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Worldwide Winners: 3 All-World ETFs to Propel Your Profits

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  • Here are three global ETFs to bet on in 2024.
  • SPDR Portfolio Emerging Markets ETF (SPEM): India is progressing economically. 
  • Xtrackers MSCI Europe Hedged Equity ETF (DBEU): With all the European currencies, having a currency hedge to the U.S. dollar is nice.
  • Franklin International Core Dividend Tilt Index ETF (DIVI): The ETF provides a dividend yield of over 4%.
global ETFs - Worldwide Winners: 3 All-World ETFs to Propel Your Profits

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Although the natural inclination of retail investors is to invest in U.S.-listed stocks because they’re the ones people are most familiar with, it makes sense to look beyond America’s borders with global ETFs.

Unlike most countries, home-country bias isn’t nearly as big a deal because the U.S. market capitalization is $46.2 trillion, accounting for 42.5% of the world market cap. The next closest is the European Union at 11.1%. 

While it’s tempting to keep all your investments in U.S. companies, the reality is that regression to the mean will occur in the future, delivering lower returns on your investments than if you diversified outside the country. 

Citigroup equity strategist Beata Manthey believes European stocks will hit a record high in 2024. 

“A Citigroup model that adjusts for the impact of interest rates suggests that ‘Europe already has the most bad news in the price,’ the strategist wrote in a note. She expects the regional benchmark Stoxx 600 Index to end 2024 at 510 points,” Bloomberg reported Manthey’s comments on Dec. 1. 

For those who aren’t afraid to go anywhere for returns, here are three of the top global ETFs to do this. 

SPDR Portfolio Emerging Markets ETF (SPEM)

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The SPDR Portfolio Emerging Markets ETF (NYSEARCA:SPEM) tracks the performance of the S&P Emerging BMI (Broad Market Index), a collection of emerging market stocks that are a subset of the broader S&P Global BMI.

With an annual expense ratio of 0.07%, SPEM is an excellent way to gain exposure to emerging markets. Launched in March 2007, the ETF has grown to $7.78 billion in assets under management. 

The ETF has 3,485 holdings. The average holding has a weighted average market capitalization of $75.8 billion, a forward price-to-earnings ratio of 12.4 and estimated earnings per share growth of 14.1% over the next 3 to 5 years.

The top three sectors by weight are financials (22.20%), technology (17.45%) and consumer discretionary (12.84%). The top 10 holdings account for 17.60% of the net assets. Most of the names in the top 10 should be recognizable by investors.

As for the country representation, the top three by weight are China (29.29%), India (20.95%) and Taiwan (18.16%). 

Morningstar rates it four stars out of five. 

Xtrackers MSCI Europe Hedged Equity ETF (DBEU)

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The Xtrackers MSCI Europe Hedged Equity ETF (NYSEARCA:DBEU) tracks the performance of the MSCI Europe US Dollar Hedged Index. The index is “designed to track the performance of the developed markets in Europe while mitigating exposure to fluctuations between the value of the U.S. dollar and the currencies of the countries included in the Underlying Index,” stated DBEU’s summary prospectus. 

Morningstar gave the $466 million ETF a five-star rating. You can’t ask for much more. It charges a reasonable annual expense ratio of 0.46%, and DBEU gives you access to primarily large-cap stocks (86% of the portfolio) and mid-cap stocks (14%).

The 435 holdings in the ETF have an average market cap of $54.8 billion, a price-to-book ratio of 1.66 and a price-to-sales ratio of 1.07. 

The top three sectors by weight are financials (17.06%), industrials (15.09%) and healthcare (14.76%). The top 10 holdings account for 22% of the net assets. All of the names in the top 10 are well-known to most American investors. 

As for the country representation, the top three by weight are the United Kingdom (19.73%), France (17.52%) and Switzerland (15.07%). 

When it comes to performance relative to its peers, DBEU has performed in the top quartile of Europe stock ETFs over the past three and five years.

Franklin International Core Dividend Tilt Index ETF (DIVI)

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The final ETF is the Franklin International Core Dividend Tilt Index ETF (NYSEARCA:DIVI). It is also rated five stars by Morningstar.

It tracks the performance of the Morningstar Developed Markets ex-North America Dividend Enhanced Select Index, designed to generate a higher dividend yield than the Morningstar Developed Markets ex-North America Target Market Exposure Index.

DIVI was started in June 2016. It has net assets of $512 million. The ETF charges just 0.09% annually while providing investors with a 4.16% yield. Since its inception, it’s delivered an annualized total return of 6.9%.

The fund currently holds 479 stocks with a weighted average market cap of $81.7 billion, a P/B of 1.56 and a forward P/E of 12.16.

Europe accounts for 58% of the portfolio, followed by Asia (26%), Australia/New Zealand (11%), North America (4%) and cash (1%). The 4% for North America is the U.S. for those who don’t want any overlap with their existing U.S. holdings.

The top 10 Holdings account for 15% of the portfolio. It turns the entire group of holdings approximately once every two years.

On the date of publication, Will Ashworth did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Will Ashworth has written about investments full-time since 2008. Publications where he’s appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia.


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